Description of ActionCoach Business Coaching

ActionCoach is a Franchise Operation

ActionCoach was founded in 1997 as Action International (with the name change about 2005).

It is a Franchisor that sells ActionCoach Business Coaching Franchise licenses in which the Franchisee can operate as a business “coach” within a specified geographical area.

Franchise fees range around $50,000-$110,000 to join and flat fees of $1,500 – $1,800 monthly.

You are welcome to visit ActionCoach for yourself.

There are no required qualifications or experience to become a Franchisee/Coach

Anyone who can purchase the Franchise is a de facto business coach. No business or coaching experience is required.

The Franchisee markets themselves as business coaches, based on the training provided by ActionCoach. This training is a 10 day “course” that allegedly trains the Franchisee in all aspects of running their franchise successfully including how to work with business owners.

ActionCoach clients have very few options.

Clients are limited to the few ActionCoach business coaching franchisees who are licensed to operate in the geographical territory the client is located in.

Based upon their Franchise model, clients are stuck with the franchise they initiate coaching with and can only switch coaches within that franchise. However, virtually all ActionCoach business coaching franchises only have one coach, who is the franchisee.

ActionCoach corporate makes incredible promises.

ActionCoach Corporate promises that their Franchisees will be all things to all people.

As quoted on their website: “A Coach will be your marketing manager, your sales director, your training coordinator, your partner, your confidant, your business mentor, your best friend… and, an ActionCOACH will help you make your dream come true.”

Also promised on the website: “From our team training programs to our ever so powerful recruitment systems, building a team of motivated, passionate performers is all part of the program.”

ActionCoach Business “Coaches” provide standard business services

The business training materials are standard business and marketing concepts that have been around for years and can be found in many popular business books.

“ActionCoach Franchisee-coaches” are so busy training, teaching, mentoring, and providing consulting services as promised, that little if any real business coaching can take place. The potential value provided by the Franchisee is to apply these services correctly to a client’s specific situation.

Fees range from $1,500 to more than $4,000 per month

Franchisees set their own business service fees depending on the business services packages purchased, and the attitude of the franchisee.

Majority of Franchisee/Coaches fail within one year

A majority of ActionCoach Business Coaching Franchisees withdraw from the program in often less than a year. The ActionCoach Business Coaching Franchises licenses are then resold to new Franchisees.

Clients have no interaction with ActionCoach corporate

Although the ActionCoach (the Franchisor) makes guarantees and representations as to their brand of business services (Called “coaching”) the client only has contact with the local Franchisee/coach. The ActionCoach corporate provides Franchisees with a template website and steers leads to them.

The Guarantee is from ActionCoach corporate, not the ActionCoach Business Coaching Franchisee

ActionCoach corporate touts their guarantee as providing a safety net for the client. However, the guarantee is not binding on ActionCoach corporate or on the Franchisee/Coach who is providing the services to the client.

Analysis

ActionCoach Franchisees offers a blend of business services, not true business coaching

Through the Franchisee, the client receives packaged business services, frequently labeled as “coaching,” on standard well-known business techniques.

They do not practice true business coaching.

The Franchisees act in the role of “trainers” or “consultants,” or “mentors” who tell clients what to do rather than business coaches.

Business coaches assist business owner clients to grow, improve, and expand to reach their potential so they gain the clarity, confidence, and energy to become the successful and productive business owners they want to be on their own terms.

The ActionCoach business coaching service programs are expensive

The cost of the ActionCoach business services is high compared with other methods of accessing the same standard information such as books, seminars, webinars, etc.

Selling franchises is the primary source of revenue for ActionCoach Corporate

It is important to remember the Franchisor/Franchisee relationship. The motivation for ActionCoach corporate, the Franchisor, appears to be to sell and resell as many franchises as possible to maximize their revenue.

The Guarantee has little or no value

Since ActionCoach corporate promotes their guarantee heavily, it is useful to analyze it in detail:

1. The Guarantee is from ActionCoach Corporate, not the Franchisee/Coach. However, as described below, it is the Franchisee/Coach who determines if the Guarantee is to be honored.
2. The Guarantee requires the client to work with and pay for 17 weeks (that’s 4 months) with the Franchisee/Coach. The fees for these 17 weeks typically exceed $6,375.
3. During the 17 weeks, the client must “make a good faith effort to do the assigned required work, attend all coaching sessions and agreed-upon events and workshops, complete all committed decisions and homework assignments by the agreed-upon dates”.
4. If after 17 weeks, the client is not satisfied, the Franchisee/Coach makes the determination if the client fulfilled their obligations as mentioned above. If yes, then the Franchisee/Coach, at their discretion, is to provide free coaching.
   NOTE – the Franchisee/Coach who was unsuccessful in providing the coaching is the same person who will provide the free coaching. If they were not successful during the 17 weeks when being paid, what is going to make them successful when they are not being paid?
5. If the Franchisee/Coach decides the client did not fulfill their obligations, then the Guarantee will not be honored and there is no recourse for the client. ActionCoach corporate protects itself from the execution of the Guarantee.
6. The Guarantee is not a money back guarantee. It is only for additional free coaching from the same person who was unable to provide successful coaching in the first place.

Due diligence recommended

Since ActionCoach business services are expensive and time consuming, we recommend that anyone considering using ActionCoach should do their due diligence including googling for reviews of ActionCoach.

Comparison of ActionCoach Business Coaching
with The Coach Connection